A "coupon note" would seem to be an ordinary promissory note having a long enough time to run to call for different interest payments, the interest being represented by attached tickets or coupons, which must be presented, from time to time, in order to collect the interest. In most circumstances these notes would naturally be made payable to bearer, passing from hand to hand without indorsements, but this is not necessarily so, as the note may be drawn payable to some person or order, in which event it passes by indorsement; this, however, not affecting the coupons, which are good in the hands of any bona fide holder without indorsement. The notes accompanying a great many of the Western farm mortgages are in coupon form.

"Coupon notes" comprise those having a comparatively short time to run, say five years or less, but when issued by a corporation, in what way they technically differ from a "debenture, " it is difficult to say, unless the fact that the latter has a longer life explains it.

Municipalities desiring to borrow money for a relatively short time, yet longer than six months, often issue " coupon notes." This has also been a favourite form of security issued by many corporations of late which have borrowed large sums for short periods.